Page:United States Statutes at Large Volume 89.djvu/311

 PUBLIC LAW 94-50—JULY 2, 1975

89 STAT. 251

EMERGENCY MORTGAGE RELIEF LOANS AND ADVANCES

SEC. 105. (a) The Secretary is authorized, upon such terms and con- 12 USC 2704.. ditions as the Secretary may prescribe, to insure banks, trust companies, finance companies, mortgage companies, savings and loan associations, insurance companies, credit unions, and such other financial institutions, which the Secretary finds to be qualified by experience and facilities and approves as eligible for insurance, against losses which they may sustain as a result of emergency loans or advances of credit made in accordance with the provisions of section 104 and this section with respect to mortgages eligible for assistance under this title. (b) In no case shall the insurance granted by the Secretary under this section to any financial institution on loans and advances made by such financial institution for the purposes of this title exceed 40 per centum of the total amount of such loans and advances made by the institution, except that, with respect to any individual loan or advance of credit, the amount of any claim for loss on such individual loan or advance of credit paid by the Secretary under the provision of this section shall not exceed 90 per centum of such loss. (c) The Secretary is authorized to fix a premium charge or charges for the insurance granted under this section, but in the case of any loan or advance of credit, such charge or charges shall not exceed an amount equivalent to one-half of 1 per centum per annum of the principal obligation of such loan or advance of credit outstanding at any time. (d) The Secretary is authorized and empowered to waive compli- Waiver, ance with any rule or regulation prescribed by the Secretary for the purposes of this section if, in the Secretary's judgment, the enforcement of such rule or regulation would impose an injustice upon an insured lending institution which has substantially complied with such regulations in good faith. Any payment for loss made to an insured financial institution under this section shall be final and incontestable after two years from the date the claim was certified for payment by the Secretary, in the absence of fraud or misrepresentation on the part of such institution unless a demand for repurchase of the obligation shall have been made on behalf of the United States prior to the expiration of such two-year period. The Secretary is authorized to transfer to any financial institution approved for insurance under this title any insurance in connection with any loan which may be sold to it by another insured financial institution. (e) The aggregate amount of loans and advances insured under this Limitation, section shall not exceed $1,500,000,000 at any one time. EMERGENCY MORTGAGE RELIEF

PAYMENTS

SEC. 106. (a) In the case of any mortgagee which would otherwise 12 USC 2705. be eligible to participate in the program authorized under section 105 but does not qualify for an advance or advances as authorized by section 113 of this title or under section 10,10b, or 11 of the Federal Home Loan Bank Act or otherwise elects not to participate in the program 12 USC 1430, authorized under section 105, the Secretary is authorized to make 1430b, 1431. repayable emergency mortgage relief payments directly to such mortgagee on behalf of homeowners whose mortgages are held by such financial institution and who are delinquent in their mortgage payments. (b) Emergency mortgage relief payments shall be made under this section only with respect to a mortgage which meets the requirements of section 103 and onlj on such terms and conditions as the Secretary may prescribe, subject to the provisions of section 104.

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